Bidorbuy gave the following account of the recent fraud case: “In a recent isolated case of alleged internet fraud, it is presumed that a seller has gone missing in action after having sold over R100 000's worth of goods on bidorbuy in a single day. The seller has been trading legitimately on bidorbuy for over a year and has previously concluded a number of successful sales with various satisfied buyers.”
“In August 2006 he applied to bidorbuy to become a verified seller, and after having passed the stringent velocity tests with bidorbuy he received a verified status. With no previous history or record of abnormal behavior there was no way that bidorbuy could have prevented or suspected any conduct unbecoming.”
Bidorbuy said that it now appears that the seller may have disappeared after having accepted payment from various buyers via credit card and direct deposits, with the promise of delivering the goods. Unfortunately for the buyers, the goods have not yet been delivered and the seller is unreachable.
"The situation in question is extremely unfortunate and the first of its kind we have experienced in South Africa, and bidorbuy is taking the matter very seriously," says Gillian Meier, Business Manager at bidorbuy.co.za.
"The rate of fraudulent transactions on bidorbuy is a fraction of a percentage of the total transactions that take place and in most cases (the current case in question excluded) would have been avoided by most savvy buyers. Bidorbuy is doing everything possible to resolve the case in question and to recover the funds for the affected buyers," continues Meier.
Security not stopping growth
Security is still a serious concern for many SA Internet users especially when they have to hand over money for goods in the virtual world. For many, these concerns serve as a deterrent preventing them from engaging in online shopping.
Despite this apprehension, the number of South Africans choosing to do their banking and shopping online is rising steadily. According to Bidorbuy it has experienced an increase of over 200% in the last year, resulting in over R5 million revenue per month.
“To protect this valuable business model and to keep its community’s best interests at heart, bidorbuy takes a very proactive stance in ensuring that it combats against online fraud as far as possible,” Bidorbuy said.
Users should take responsibility
Bidorbuy has reassured customers that they various systems in place to protect their members against online fraud but there is no foolproof method of guaranteeing 100% safety and security.
“With crime on the rise - whether online or offline - consumers need to take necessary precautions. As one takes care not to leave your purse or credit card unattended, so too should you be alert to the precautions to take when purchasing online,” said Bidorbuy.
Andy Higgins, Bidorbuy Managing Director, said that members should always look at a member’s trading history, make use of the buyer protection program and even just give the seller or buyer a call to verify their credentials.
BidOrBuy doing their bit
In this specific fraud case, Bidorbuy dealt with the police and even hired a private detective to try and locate the seller. Their attempts to track down the suspect were not successful but it does show dedication from the online auction website.
Higgins further said that the community support was very encouraging. According to Higgins, the members pulled together to try and locate the renegade seller and prevent this from happening again.
“Bidorbuy does not proclaim to be experts in determining what is legal and what is not, however they have taken the initiative in forging closer relationships with authorities such as the SAPS, SAFACT and ICASA in order to assist with blacklisting sellers where necessary and to aid in taking necessary precautions and legal actions where required,” said Bidorbuy.
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